Did you know that the car insurance group banding from 1-20 is already being replaced with a 1-50 rating? I didn’t until recently and there’s very little information about it in the public domain. While we all understand that the 1-20 bands roughly reflect key details like vehicle security, full cost, repair cost (and ease of repair), performance and desirability, the new bands will allow further definition and – in my view – give the insurers an opportunity to charge us more.
The banding system is set by the Association of British Insurers. The 1-20 bands have been with us since 1992 and the new ones are said to reflect the complexity of and repairs to modern vehicles. The ABI site doesn’t give further details but refers you straight to the Thatcham site for individual vehicle details:
There’s a fair summary of the reasons on this financial web site:
It has a slightly flawed argument that your insurance would only go up if the new band is more than 2½ times greater than the old, but that assumes a linear mapping.
The most surprising comment for me was that anyone in a big, ‘safe’ car might now be penalised because the vehicle weight would mean any damage to other objects could be greater. I think I’d rather pay a little extra to have acres of Swedish metal around me rather than drive a Citroën Visa.Tweet